Jamie Dimon succession race narrows

**Marc Filippino** (0:00)
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Good morning from the Financial Times. Today is Friday, June 26th, and this is your FT News Briefing. The race to succeed Jamie Dimon just got a little tighter, and concerns over SpaceX's bond sales are bubbling up. Plus, the US's top court is shielding Bayer from litigation related to the weed killer Roundup.

**Florian Mueller** (0:40)
They were in a big crisis, and now this offers them a way out. So at the end, it's great news for the company and for their CEO Bill Anderson.

**Marc Filippino** (0:50)
I'm Marc Filippino, and here's the news you need to start your day.
JPMorgan Chase elevated two possible candidates yesterday to eventually replace Jamie Dimon as CEO. Doug Petno and Troy Rohrbaugh will serve as co-presidents of America's biggest bank. What does that mean for the future of JPMorgan though? Joshua Franklin is the FT's US banking editor. He joins me now to talk about this. Hi, Josh.

**Joshua Franklin** (1:21)
Hi there.

**Marc Filippino** (1:22)
So first of all, introduce us to Petno and Rohrbaugh. Who are they and how will they split this role?

**Joshua Franklin** (1:29)
So this is one of the most closely watched, not the most closely watched succession battles on Wall Street. It's also one of the most slowly moving succession battles on Wall Street. It's been going on for a long time.
So the simplest way to think about these two guys is Doug Petno is an investment banker, and Troy Rohrbaugh is a trader. Up until now, they've been co-heads of the commercial investment bank division at JPMorgan, which is about 40 percent of the bank's profits. And neatly, it is basically made up of investment banking and trading. Now, what's going to happen is Doug Petno is going to be the sole head of that business, and Troy Rohrbaugh is going to become the head of the Chase consumer business at JPMorgan, which is also about 40 percent of the bank's profits. In addition to the elevation for Petno and Rohrbaugh, you also had the announced departure of Marianne Lake, who was also a top candidate for the job. Her departure was quite a big surprise.

**Marc Filippino** (2:28)
Now, you said that this is a slow-moving succession race at JPMorgan. You and I have talked about this a couple of times now. How significant is this appointment that we're talking about with Petno and Rohrbaugh?

**Joshua Franklin** (2:41)
We won't know how significant ultimately until the day that Jamie Dimon eventually decides to leave. He's now in his third decade running the bank. But this is potentially one of the most significant succession updates in years.
Over the decades, there have been numerous potential CEO candidates. But now, Jamie Dimon has been there for a long time. He just turned 70 this year. It's probably a number of years he has left, but probably it is true that every day he has one less day running JPMorgan, and we potentially are getting closer now to finding that successor. So these are the two guys that maybe are just around at the right time to really be in the final race for the job.

**Marc Filippino** (3:21)
So it sounds like we shouldn't necessarily be starting the countdown clock on Dimon's retirement.

**Joshua Franklin** (3:28)
No, he has made pretty clear that he has no immediate plans to step down. I think we're still talking more years than anything else with Jamie Dimon staying on as CEO.
Then the other thing I think for people to remember is, he's talked very openly about wanting to stay on as executive chair of the board of directors at JPMorgan, even after he hands over the CEO job. So it's very likely that Jamie Dimon is going to stick around for a long time.

**Marc Filippino** (3:53)
Joshua Franklin is the FT's US banking editor. Thanks so much, Josh.

**Joshua Franklin** (3:57)
Thanks, Marc.

**Marc Filippino** (4:04)
SpaceX decided to launch a bond sale shortly after its record-breaking IPO. And it's a sign that markets are entering quote, bubble territory. That's according to the investment chief at insurance group Allianz. He made this warning at the FT's global insurance summit and FT senior markets correspondent Ian Smith was there. He joins me now. Hi Ian.
Hi Marc. So let's hear exactly what Ludovic Subran said.

**Ludovic Subran** (4:28)
When you start to see too much debt being taken to give back this money to shareholders for too long, this looks bubbly. So for me, that's where you see the frothy market. And SpaceX is a good example because everybody has been looking at this IPO and whatnot. And then the guy says, oh, by the way, I want to get 20 billion.